WASHINGTON, DC—Strategic Hotels & Resorts has closed on a $120 million limited recourse loan secured by its Four Seasons Washington DC hotel to refinance the $130 million previously encumbering the property.
The REIT reports that the interest rate is based on a floating rate of LIBOR plus 225 basis points. The loan has a three-year initial term with two, one-year extension options. Deutsche Bank Securities originated the financing.
During the REIT's most recent earnings call in May CEO Rip Gellein noted that the Four Seasons in DC experienced a 12% RevPAR decline year over year – but went on to say that was primarily a "reflection of a very tough comparison to the first quarter of last year when the hotel was the beneficiary of the presidential inauguration that added more than $650,000 in revenue in January alone as a result of five-day average rates between $1,300 and $1,900 a night."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
